Iran targets new crude oil markets

Brent-crde-oil-Re-e1452080958181SINGAPORE. — With Iran ready to resume business as usual with the world under a historic nuclear deal, Tehran will target India, Asia’s fastest-growing major oil market and old partners in Europe with hundreds of thousands of barrels of its crude.

Iran expects the United Nations nuclear watchdog to confirm it has curtailed its nuclear programme, paving the way for the unfreezing of billions of dollars of assets and an end to bans that have crippled its oil exports.

Tehran plans to lift exports by 500 000 barrels per day post-sanctions and gradually raise shipments by the same amount again, adding to a global glut and likely putting more pressure on oil prices which have already dropped 70 percent since 2014, to below $30 per barrel.

Iran has 22 Very Large Crude Carriers (VLCCs) floating off its coast, with 13 fully or almost fully loaded, mapping data on Thomson Reuters’ Eikon showed, carrying enough crude to meet India’s import needs for almost a week.

A senior Iranian source close to supply negotiations said that the country — which has the world’s fourth-biggest proven oil reserves — was targeting India as its main destination for crude.

“Indian crude demand is growing faster than other Asian countries. Like our competitors, we see this country as one of the main targets for Asian sales,” said the official, who spoke on condition of anonymity.

Iran hopes to raise its exports to India by 200 000 bpd, up from the 260 000 bpd currently shipped under sanctions’ restrictions, the official said.

At the right price, Indian refiners said they were keen to import more from Iran, as demand for fuel soars on 10 percent annual growth in car sales, a rate that is now faster than China’s.

Iran already trades limited amounts of oil mainly with Asian buyers legitimately under sanctions. — Reuters.

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